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Service tax for builders

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vivek

Articles

23 Points Posted on 30 September 2014

Hello All..

My Client is a private construction company(Pvt Ltd) they built a resedential House for its Director for Rs 60 laks..

Director paid Rs 60 Laks in part payments throughout the period of construction to the company and now the constructions are over.

Whether this Attracts Service Tax??

Thanks In Advance :)

Replies (2)

Sumit Grover

Chartered Accountant

2575 Points Posted on 30 September 2014

It can attract service tax, if the same falls under the residential unit as a part of residential complex.

However, if it is a residential unit otherwise than as a part of a residential complex, the same shall get exempted by virtue of entry no. 14(b) of N/N 25/2012- ST(i.e. Mega Exemption).

Ajit Bhati

Chartered Accountant

96 Points Posted on 30 September 2014

Service tax will attract if its fall under Residential complex service.

Service tax will arise in respect of every stage due payment during the construction period and before completion certificate is obtained from competient authority.

No service tax for Single Residental House as pointed by CA Sumit